Student income support and the labour market

For the first time in years higher education student income support recipient numbers have increased. On a late June count, in 2025 147,490 students were receiving payments, up 10,575 or 7.8% on the same time in 2024. All three benefit programs – Youth Allowance, Austudy and Abstudy – increased numbers but 70% of growth came from the dependent Youth Allowance category, so people aged 21 years or less subject to a parental income test.*

Trends in total numbers

Although the 2025 upward trend is noteworthy given the recent history of decline, 147,490 recipients is still lower than any year in the 2009-2022 period. It’s nearly 73,000 below the 2014 peak, despite an increase in enrolments since then.

Policy decisions influence student income support numbers, but cannot fully explain these trends. The most significant negative policy change since 2014 was the 2016 conversion of the Start-up Scholarship to a loan, effectively reducing the non-repayable grant value of student income support by $2000 a year. But a downward trend started before then. Subsequent policy changes were small positives for students without, until 2025, stopping the decline in recipient numbers.

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